Asked by Madison Brewer on May 16, 2024
Verified
Which of the following would not appear as a debit in the Work in Process account of a second department in a two stage production process?
A) Materials used.
B) Overhead applied.
C) Labor assigned.
D) Cost of products transferred out.
Work In Process Account
A financial account used to track the costs associated with the production of goods that are not yet completed.
Two Stage Production
A production process divided into two distinct phases, each with its set of operations or focus areas, to complete the manufacture of a product or service.
- Identify the methods used to allocate and record manufacturing expenses in a process costing system.
Verified Answer
KK
khushboo kapilaMay 20, 2024
Final Answer :
D
Explanation :
The cost of products transferred out would be a credit in the Work in Process account of the first department and a debit in the Work in Process account of the second department. Therefore, it would not appear as a debit in the Work in Process account of the second department. A, B, and C would all appear as debits in the Work in Process account of the second department.
Learning Objectives
- Identify the methods used to allocate and record manufacturing expenses in a process costing system.
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